Bitcoin-based crowdfunding platform launched in Kenya

Kenyan startup Drofund has launched its bitcoin-based crowdfunding platform for African startups and small businesses, aimed at helping them access global capital.

Launched last month, Drofund uses bitcoin as a fundraising currency due to the fact it transcends borders and jurisdictions, enabling African startups to raise capital from anywhere.

“We saw a huge funding gap in Africa and as co-founders, we have previously experienced the pain of raising capital on the continent. Accessing capital is one of the biggest challenges facing African entrepreneurs and we believe Drofund presents a solution to this,” co-founder Mathenge Kanyoro told Disrupt Africa.

Despite being an African startup, Drofund is positioning itself as a global platform, competing with the likes of Kickstarter and Indiegogo.

“Closer to home, our African competitor is Thundafund. What sets Drofund apart from the other crowdfunding platforms is the fact that we are using bitcoin, the digital peer-to-peer currency, as the fundraising currency,” Kanyoro said.

“What this means is that African entrepreneurs will now be able to tap into global capital thanks to bitcoin’s ubiquitous nature.”

The self-funded startup – which charges a five per cent commission on all funds raised – is running a crowdfunding campaign on its own platform, and also looking for investors in Kenya. It is based out of Nairobi for the time being but hopes to set up pilot offices in other major cities in Africa in future.

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Passionate about the vibrant tech startups scene in Africa, Tom can usually be found sniffing out the continent's most exciting new companies and entrepreneurs, funding rounds and any other developments within the growing ecosystem.